Coinbase and Mastercard Bet $2B on Stablecoin Infrastructure to Outpace Legacy Systems

The U.S. stablecoin market is witnessing a major consolidation as Coinbase and Mastercard reportedly engage in advanced negotiations to acquire London-based stablecoin infrastructure firm BVNK for approximately $2 billion, according to sources familiar with the discussions. The potential deal, if finalized, would position the two financial giants to capitalize on the growing demand for blockchain-based payment solutions, with BVNK's technology serving as a critical enabler for cross-border transactions and institutional-grade stablecoin operations.

BVNK, which recently secured a $50 million Series B funding round led by Haun Ventures, has emerged as a key player in the stablecoin infrastructure space. The company's platform processes over $10 billion in annualized transaction volume for clients such as Deel, Rapyd, and Trust Payments, leveraging stablecoins to streamline global payroll, merchant settlements, and marketplace payouts. Its recent expansion into the U.S. market-marked by the establishment of offices in San Francisco and New York-aligns with the heightened regulatory clarity provided by the newly passed GENIUS Act, which sets a federal framework for stablecoin oversight in the U.S. .

The acquisition interest from Coinbase and Mastercard reflects broader industry trends. Both companies have been aggressively expanding their stablecoin capabilities. Coinbase, through its Ethereum layer-2 network Base, has partnered with Shopify to integrate USDC for merchant payments, while Mastercard recently announced support for four stablecoins on its Multi-Token Network. These moves underscore the growing recognition of stablecoins as a cost-effective and efficient alternative to traditional payment systems. "Stablecoins are an infrastructure upgrade for payments, ready to replace legacy systems," said BVNK CEO Jesse Hemson-Struthers, highlighting the technology's potential to disrupt cross-border transactions .

The potential $2 billion valuation for BVNK also aligns with the company's rapid growth trajectory. Since its 2021 founding, BVNK has secured partnerships with major financial institutions, including Citigroup, which invested an undisclosed sum through its venture arm Citi Ventures. The firm's valuation has surged past $750 million following its December 2024 funding round and subsequent strategic alliances . Visa, another key player in the stablecoin ecosystem, has already invested in BVNK through its Visa Ventures arm, signaling confidence in the company's ability to facilitate scalable, institutional-grade stablecoin operations .

Regulatory developments further bolster the case for BVNK's strategic value. The GENIUS Act, signed into law in July 2025, mandates 1:1 reserve backing for stablecoins and imposes strict anti-money laundering (AML) requirements. This legislative clarity has spurred institutional adoption, with JPMorgan, Fiserv, and other Wall Street firms integrating stablecoins into their payment infrastructures. For Coinbase and Mastercard, acquiring BVNK would not only accelerate their entry into the institutional stablecoin market but also provide a compliant framework to navigate evolving regulatory landscapes .

Analysts note that the deal could reshape the competitive dynamics of the stablecoin sector. With Circle's USDC and Tether's USDT dominating the market, BVNK's agnostic platform-supporting multiple stablecoins and offering embedded wallet solutions-positions it as a versatile infrastructure provider. The company's Layer1 product, a digital asset payments infrastructure solution, further enhances its appeal by offering a "hyper-optimized stablecoin core banking stack" to enterprises . For Mastercard and Coinbase, this technology could serve as a foundational layer to expand their tokenization strategies and capture a larger share of the projected $4 trillion stablecoin market by 2030 .

The potential acquisition also aligns with broader geopolitical and economic trends. As the U.S. seeks to maintain the dollar's dominance in global payments, stablecoins backed by U.S. dollars and regulated under frameworks like the GENIUS Act are seen as strategic tools. The European Union's MiCA regulation and Hong Kong's recent stablecoin ordinance further highlight the global push for regulatory harmonization, creating opportunities for U.S.-based firms to lead in this space .

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: [Stablecoin-visa-mastercard-circle-jpmorgan.html](https://www.cnbc.com/2025/06/28/stablecoin-visa-mastercard-circle-jpmorgan.html?msockid=025b31e13bfb612f1b7527613adb601b)

: [bvnk.com/blog/series-b-fuel-next-era-of-stablecoin-payments](https://bvnk.com/blog/series-b-fuel-next-era-of-stablecoin-payments)

: [cointelegraph.com/news/citi-invests-in-bvnk-stablecoin-infrastructure-expansion](https://cointelegraph.com/news/citi-invests-in-bvnk-stablecoin-infrastructure-expansion)

: [forbes.com/sites/danielwebber/2025/05/06/visa-invests-in-bvnk-in-powerful-validation-of-stablecoins-future/](https://www.forbes.com/sites/danielwebber/2025/05/06/visa-invests-in-bvnk-in-powerful-validation-of-stablecoins-future/)

: [bvnk.com/blog/the-genius-act-a-turning-point-for-stablecoins-in-the-us](https://bvnk.com/blog/the-genius-act-a-turning-point-for-stablecoins-in-the-us)

: [coinspeaker.com/stablecoin-payments-firm-bvnk-secures-50m-series-b-funding-valued-at-750m/](https://www.coinspeaker.com/stablecoin-payments-firm-bvnk-secures-50m-series-b-funding-valued-at-750m/)

: [cointelegraph.com/learn/articles/genius-act-how-it-could-reshape-us-stablecoin-regulation](https://cointelegraph.com/learn/articles/genius-act-how-it-could-reshape-us-stablecoin-regulation)

: [weforum.org/stories/2025/07/stablecoin-regulation-genius-act/](https://www.weforum.org/stories/2025/07/stablecoin-regulation-genius-act/)